Credit Advocate's Questions and Answers

Post Grad Life: Your Credit Score

noreply@blogger.com (Anonymous) — Fri, 02 May 2014 19:41:00 +0000

From the moment you establish your first line of credit, America's three major credit bureaus - Equifax, Experian and TransUnion - are tracking you. This may begin with a student loan or a credit card. Regardless, it's important for students to start building their credit history before graduation.

"Your credit report and credit scores can play a part in renting an apartment, getting a cell phone and buying a car," says Rod Griffin, Experian's director of public education. "Utility companies may charge you a lower security deposit if you have good credit scores. So having good credit can save you money."

Credit Report Trumps Credit Score
Your credit report carries more weight than your credit scores.

Student Loans Help Build Credit History but Mistakes Will Haunt You
Student loans are considered installment loans and paying these on time can help your credit score. Credit card debt and having multiple credit cards open can hurt your credit score. Also, if you've been late on payment or defaulted on a card, your scores will fall. A mistake can stay on your report for 10 years, especially if you misuse a credit card. For recent college graduates, those 10 years could affect mortgage rates, the ability to rent an apartment and the price of car insurance.

Credit card debt is one of the most important factors in bureaus' determination of your credit score. The way you use credit cards offers insight into your borrowing and credit management decisions more than installment loans do.

Recent grads (and anyone using credit cards) can help build their credit reports and credit scores by paying off their bills in full each month and by keeping utilization rates low. "Utilization" is the ratio of a cards balance to its credit limit (what you have borrowed divided by what you can borrow) and it is key to keep this balance below 30% of your credit limit.

Your Credit Report Can Affect Your Job Opportunities
Many employers run credit checks during the interview process. It's an important indicator of how you handle responsibility. In several fields, if you have a poor credit report, it will knock you out of the running for a position. Credit reports are used by employers to help verify a person's identity by comparing it to the information provided by the employee in their application. For jobs that require high security or higher risk responsibility, it is important that the identifying information in the application matches that in the credit report.

Remember that a prospective employer cannot run a credit report without your written consent so be sure to read the fine print of anything you sign during the job application process.

What now?

We should all be checking our credit reports annually (we all get one from each national credit bureau for free, 3 free credit reports annually) to monitor fraud and to analyze our fiscal health. You can obtain reports from a secondary site like AnnualCreditReport.com. Most other ways of checking your credit score comes with a fee. CreditKarma.com is one of the few that offers free credit scores, however, it only receives credit reports from TransUnion.

Any Credit & Housing Counseling questions can be emailed to rsimon@creditadvocates.org
creditadvocates.org

Congratulations 2014 Graduates!

Private Student Loans

noreply@blogger.com (Anonymous) — Wed, 26 Mar 2014 14:56:00 +0000

Student loans are alike other loans in that you borrow money from a lender and promise that you'll repay it with interest. The two general types of student loans greatly differ - federal and private.

Before approaching private student loans, Credit Advocates HIGHLY encourages everyone to first apply for federal student loans.

Federal student loans are:

Direct Subsidized Loans & Direct Unsubsidized Loans
Direct PLUS Loans (for graduate and professional students or parents)
Federal Perkins Loans

Federal v Private Student Loans

Federal student loans include many benefits (such as fixed interest rates and income-based repayment plans) not typically offered with private loans. Private loans are generally more expensive than federal loans.

Federal Student Loans

You do not have to start paying until you graduate, leave school, or change enrollment to less than half-time
Interest rate is fixed and often lower than private loans & much lower than some credit card rates - Interest Rates & Fees
Undergrad students with financial need will likely qualify for a subsidized loan, the government pays the interest while you are a least half-time enrolled
No need for a credit check for most Federal Student Loans (except for PLUS loans) - Federal Student Loans can help you establish a good credit record
Don't need a cosigner to get a federal student loan in most cases
Interest may be tax deductible
Loans can be consolidates into a Direct Consolidated Loan - Consolidation Options
If you have trouble paying your loan, you may be able to temporarily postpone or lower your payments
Several repayment plans including options to tie your monthly payment to your income
No prepayment penalty fee
You may be eligible to have some portion of your loans forgiven if you work in public service - Loan Forgiveness Program
Free help is available at 1-800-4-FED-AID

Private Student Loans

Many require payments while still in school
Variable interest rates, some greater than 18% - a variable rate may significantly increase the total amount you pay
These loans are not subsidized - you are responsible fro 100% of this loan
Require an established credit record. The cost of a private loan will depend on your credit score and other factors
You may need a cosigner
Interest may not be tax deductible
Private Student Loans cannot be consolidated into a Direct Consolidation Loan
May not offer forbearance or deferment
Check with lender to find out about repayment options
Be sure there are no prepayment penalty fees
Unlikely your lender will offer a loan forgiveness program
The Consumer Financial Protection Bureau's private student loan official may be able to assist you if you have concerns about your private student loan

How do you get a federal student loan?

Complete the Free Application for Federal Student Aid (FAFSA)

Credit Advocates urges everybody to remember...
It is too easy to have a relaxed attitude toward loans & student loan debt is at an all-time high of $1 trillion - outweighing credit card debt. It is imperative to consider our state schools and not just private colleges and universities. The prices of these institutions have no correlation to the cost of education. Before applying to colleges and universities think about the cost of school, room & board, and higher living expenses that are unavoidable in urban areas.

Credit Advocates strives to educate the public on all credit & housing counseling matters. For all questions answered you can email me at rsimon@creditadvocates.org.

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

Lets Understand Federal Student Loans!

noreply@blogger.com (Anonymous) — Tue, 18 Mar 2014 18:56:00 +0000

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.

Direct Subsidized Loans

Available to undergraduate students with financial need
Your school determines how much you can borrow & the amount may not exceed your financial need
The U.S. Department of Education pays the interest on a Direct Subsidized Loan

While you're in school at least half-time
For the first 6 months after you leave school (grace period), and
During a period of deferment

*Borrowers of Direct Subsidized Loans first disbursed between July 1, 2012 and July 1, 2014 will be responsible for paying any interest that accrues during the grace period and will be added to the principal balance

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate and graduate students
There is no requirement to demonstrate financial need
Your school determines the amount you can borrow based on your cost of attendance & other financial aid you receive
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods
If you choose not to pay the interest while attending school, during grade periods & deferment or forbearance periods, your interest will accrue and be capitalized (added to the principle amount of your loan)

Are you eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan?

Enrolled at least half-time at a school that participates in the Direct Loan Program
Enrolled in a program that leads to a degree or certificate awarded by the school
Direct Subsidized Loans are only available to undergraduate students who have financial need
Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students & are not required to show financial need

How do I apply for a loan?
Complete & submit the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA to determine how much student aid you are eligible to receive. Direct Loans are typically included as part of your financial aid package.

What are the current interest rates?
Direct Subsidized Loans for Undergraduate Students - 3.86%
Direct Unsubsidized Loans for Undergraduate Students - 3.86%
Direct Unsubsidized Loans for Graduate Students - 5.41%

Understanding interest rates & fees
Information for military members & family

Are there other fees for this loan other than interest?
Yes.
There is a 1.072% loan fee on all Direct Subsidized & Unsubsidized Loans & will be proportionately deducted from each loan disbursement.
*Loans disbursed prior to December 1, 2013 have different loan fees

So... How do I receive my money?
The school will first apply your loan funds to your school account to pay for tuition, fees, room and board, & other school charges. If any additional funds remain, they will be returned to you. All loan funds must be used for education expenses!
Learn more about the process of receiving federal student aid

If your federal aid package includes your federal student loans, your school will tell you how to accept the loan. If it's your first time receiving a Direct Loan you must:

Complete entrance counseling
Sign a Master Promissory Note (MPN)

Credit Advocates recommends you contact the school's federal aid office for details regarding the process for receiving a loan at your school.

Is that is? Does anyone contact me?
when you receive your Direct Loan, you will be contacted by your loan servicer (who you repay your loan to).

Yes. You must pay this back. There are several ways.
There are several ways to repay your federal loans (private loans are different, Credit Advocates will review these soon). Your loan servicer can help you understand which repayment options are available to you. Generally you have 10-25 years to repay your loan depending on the repayment plan.

Learn more about repayment options
Understand deferment or forbearance options for those having trouble repaying their loans

Define this Lingo.

Grace period - Period of time after borrowers graduate, leave school, or drop below half-time enrollment when they are not required to make payments on certain federal student loans
Deferment - Postponement of payment on a loan is allowed under certain conditions. Interest does not accrue on Direct Subsidized Loans, Subsidized Federal Stafford Loans, & Federal Perkins Loans - all other loans do accrue interest
Forbearance - Period during which your monthly loan payments are temporarily suspended or reduced. Your lender may grant you a forbearance if you are willing but unable to make loan payments due to certain types of financial hardship
Loan servicer - Company that collects payments on as loan, responds to customer service inquiries, & preforms other administrative tasks associated with maintaining a loan on behalf of a lender - click here if you are unsure of who your loan servicer is
Entrance counseling - A tool to ensure you understand your obligation to repay the loan
Master Promissory Note (MPN) - Agreeing to the terms of the loan

Credit Advocates strives to educate the public on all credit & housing counseling matters. For all questions answered you can email me at rsimon@creditadvocates.org.

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

Happy Apartment Hunting!

noreply@blogger.com (Anonymous) — Fri, 31 Jan 2014 23:51:00 +0000

Just because you've managed to sign a lease for an apartment and give a company your money before, does not mean you did it correctly. Finding a realtor you trust, hunting down the elusive "perfect" apartment in your price range, and securing it can be an adventure.CACC is here with guidance to help ensure you have as easy of an experience as possible!

We like to think that all people are good, yet unfortunately that's not how life tends to play out. It is imperative to make sure your management company/landlord is reputable. Just because a company is widely known, does not make it a safe bet. Having a harassing or neglectful landlord can ruin your apartment experience. Credit Advocates reccomends looking up reviews for your potential management company and asking people who currently have an apartment managed by that company if possible. Landlords tend to assume that tenants are not aware of their rights - which is often correct - thus charge tenants illegal fees or other things landlords are not permitted to do. Additionally, landlords cannot enter your apartment without your permission!

Tenant rights in New York City: http://www.nyc.gov/html/hpd/html/tenants/tenantsrights.shtml
Tenant Rights in Boston: http://www.mass.gov/ocabr/docs/tenantsrights.pdf

When seeing apartments keep these questions in mind:

Is there a dishwasher?
Is there a washing machiene & dryer? If so, where are they?
Is there a basement? Look and smell around for mold. Look for wet spots and water damage. This should be done in the bathrooms too. Mold can bother your allergies, cause or worsen asthma, or cause more serious health issues.
Are there signs of pests? Look for chewed corners or holes in ceilings or walls.
Noise. Know who your neighbors are. College students tend to make more noise than the elderly. If you plan on having loud gatherings or want a peaceful experience, make sure to take notice of your surroundings.

Things to make sure you take note on a lease before singing:

Amount needed to secure your apartment & get it off the market - usually first & last months rent and a security deposit (typically 1 months rent - more then that is illegal)
If utilities are included
Ability/provisions for subletting
If pets are allowed (if so, if there is an extra deposit)
Key deposits (front & unit door, mailbox, gate, or parking lot entry)
Rules of conduct, quiet hours, & guest policy
Parking policy & fees
Rent due date and where/who it needs to be paid to
If there are any repairs you need done prior to moving in & dates for these repairs or cleaning of the carpets. Make sure you have a phone number and email address to use to request maintenance
How you will do your laundry
Where and when to dispose of your garbage & recycling

Lastly, before you see apartments with your realtor be aware of the realtor fee. This fee is typically (and cannot be more than) 1 months rent.

Credit Advocates strives to get as much useful information out to the public as possible. If there is an unanswered question on Housing OR Credit Counseling email me at rsimon@creditadvocates.org and I will answer any & all questions here on the blog!

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

Federal Housing Administration Loans

noreply@blogger.com (Anonymous) — Thu, 16 Jan 2014 16:30:00 +0000

The Federal Housing Administration (FHA) has been helping people become homeowners since 1934. The FHA is part of the Department of Housing and Urban Development (HUD) Office of Housing. The FHAhas helped finance military housing for returning veterans and their families during the 1940s. Since the 1940s, FHA programs have aided in the production of millions of units of privately-owned apartments for the elderly, handicapped, & lower income Americans. The FHA and HUD have insured over 34 million home mortgages and 47,000 multifamily project mortgages since 1934. Currently FHA has 4.8 million insured single family homes and 13,000 insured multifamily projects.

FHA Loan Programs

Refinance Programs
- Loans do not have to be FHA loans to be refinanced into a FHA loan
- Increased loan limits allow a low rate on loan amounts up to $729,750 in some counties - click here to see the loan limit for your county
- Refinance up to 97.75% of your home's value
- Apply here to learn if you qualify to refinance your mortgage into a fixed FHA mortgage & no out of pocket closing cost
- With the the help of FHA you maybe able to refinance your home into a lower monthly payment & be assured that your monthly principle & interest payments never increase

Home Purchase Mortgage
- The most important step in purchasing a new home is getting a pre-approval letter for a home loan
- A pre-approval letter allows you to look for a home and make an offer while giving the seller confidence in you as a buyer because you have already been pre-approved for your loan amount

Types of FHA Mortgages

Fixed Rate Mortgages (Section 203b) - FHA issues mortgages made by qualified lenders to people purchasing or refinancing a home of their own
Adjustable Rate Mortgages (Section 251) - Insures home purchasing or refinancing loans with interest rates that may increase or decrease over time, enabling customers to purchase or refinance their home at a lower initial interest rate
Graduated Payment Mortgages (Section 245) - Enables a household with limited income but is expected to raise the total income to buy a home sooner by making mortgage payments which increase in size
Growing Equity Mortgages (Section 245a) - Alike the Graduated Payment Mortgages, enables a household with limited income but is expected to raise the total income to buy a home sooner by making mortgage payments which increase in size however, the increased payments are applied to reduce the principal owed on the mortgage thus shorten the mortgage term
Energy Efficient Mortgages - Energy Efficient Mortgages Program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficient features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage
Mortgages for Condominium Units (Section 234c) - Insures the loan for units bought within a condominium building

Jumbo Loans
- HUD offers temporary FHA Jumbo loan limits ranging from $271,050 to $729,750
- Change in loan limit intended to provide economic stability to America's communities and the maximum amount will only be applicable to high-cost metropolitan areas
- Previously the loan limits for high-cost metropolitan areas were capped at $362,790 however the Economic Stimulus Act of 2008 permits the FHA to insure leans on amounts up to 125% of the area median house price

Home Improvements
Guidelines for Home Improvement Loans (Purchase or Refinance)
- Section 203(k) program is the department's primary program for the rehabilitation and repair of single family properties
- This is an important tool for community & neighborhood revitalization and for expanding homeownership opportunities
- Apply here to see if you prequalify for the FHA 203K Rehab Loan

Reverse Mortgages
FHA Assistance for Seniors
- Homeowners 62 and older who have paid off their mortgages or only have a small balance remaining are eligible to participate in HUD's reverse mortgage program
- Homeowners receive payments as a lump sum or on a monthly basis (for a fixed term for a long as they live in the house) or on an occasional basis as a line of credit
- Unline typical home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home - lenders recover the principal plus interest when the home is sold & the remaining value goes to the homeowner or whomever he/she stated
- There are no asset or income limitations on borrowers receiving HUD's Reverse Mortgages & there are not limits on the value of homes qualifying for a HUD Reverse Mortgage
- See if you prequalify online for a HUD Reverse Mortgage here

Home Equity Loans - Home Equity Line of Credit (HELOC)
A Home Equity Loan or Line of Credit may be right for homeowners who prefer:
- Access to funds for a one-time expense
- Security of a fixed interest rate & fixed monthly payment

With a Home Equity Loan you get:
- The full loan amount up front
- Fixed interest rate
- Fixed monthly payment
- Predictable payoff schedule

- A Home Equity Line of Credit (HELOC) is a home loan that permits borrowing up to a pre-approved "credit line" using their home's equity
- FHA HELOC is credit that allows the homeowner to borrow up to a pre-determined amount set by the mortgage lender unlike a conventional home loan when the amount borrowed is the total amount financed
- HELOC allows flexibility to choose how you receive and use your money
- Apply here to prequalify

VA Loan Programs
- Veterans, active duty military personnel and certain members of the reserves and National Guard are offered a special VA Home Purchase Program & VA Refinance Loans

A to Z FHA Program Index
Online Prequalifications
Contact an Expert at FHA!

All Credit & Housing Counseling questions can be emailed to rsimon@creditadvocates.org. Don't forget to return to Credit Advocates' blog to continue learning about other Housing and Credit Counseling topics!

rsimon@creditadvocates.org | creditadvocates.org

You Have Tenants Rights... Use Them! [Subletting]

noreply@blogger.com (Anonymous) — Tue, 01 Oct 2013 01:49:00 +0000

Most leases are 12-month commitments, so what is a student to do when they're in a 12-month lease yet want to leave Massachusetts for the summer? What if you're not a student but you want to travel or work in another city for more then a month? In these cases, most people look to "sublet" or rent your apartment to someone during your lease. The sublet or "sublease" creates a second lease on the apartment yet does not free you from your own obligations in terms of rent or utilities.

Subletting can be a tricky topic considering many sublets are done illegally between peers to avoid a sublet fee or extra hassle by a landlord. Yet, there are many reasons why it is important to be on a lease and acknowledged by the landlord that you are subletting or residing in a subleased apartment.

How to Sublet

To sublet, you must be a tenant with a lease. If your lease does prohibit subletting, you are free to do so. Most leases require a landlord give written consent prior to subletting. If your lease prohibits subletting and you sublet it anyway, you are putting yourself up for the possibility of eviction and financial penalties.

The landlord may ask the subtenant to pay a security deposit. Under the security deposit law in MA, a landlord may not collect a security deposit greater than one month's rent. If a landlord has already collected 1 month's security deposit from the current tenant, he/she cannot ask the subtenant for additional money to surpass the one month's rent.

Many people underestimate the importance of legally subletting and going through the landlord for a sublet. If an apartment is subleased without getting prior consent from the landlord, and something happens to the apartment, the person on the lease is going to be held responsible - even if a deal was worked out with the subleaser. Additionally, if the subleaser has an issue such as a necessary repair or needs to use any of the rights he/she has as a tenant, they cannot! Without a lease, a landlord is not obligated to respond to the subleaser's complaints or needs. Furthermore, if the landlord did not allow the subleaser, the landlord can legally evict the original tenant.

A sublet fee is a common & legal. This portion of tenant and sublet law is unregulated.

Be Aware...

When a tenant sublets, regardless of if their subleaser pays the full rent, the tenant is still fully responsible to get the full rent to their landlord
It is legal, yet rare, for the landlord to request credit card information from the subleaser to ensure that their total portion of the rent is paid
Upon the landlord charging a sublet fee, this fee is imposed from the landlord to the landlord's tenant (the landlord's tenant is the tenant who signed the lease originally), therefore in the case of a sublet fee, how that fee gets paid is between the tenant and subleaser

As Credit Advocates wraps up it's series on Tenant Rights, Credit Advocates reminds everyone to be vigilant. Try not to rent a bedroom that is in actuality a walk-in closet, be aware of landlords who insist on cash, and be aware of your rights to ensure a safe & habitable place to come home to everyday!

As always, any Credit & Housing Counseling questions can be emailed to rsimon@creditadvocates.org. Even though this series is over, all Tenants Rights questions will be answered! Lastly, don't forget to return to Credit Advocates' blog to continue learning about your Student Loans!

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

You Have Tenant's Rights... Use Them! Part 3

noreply@blogger.com (Anonymous) — Thu, 26 Sep 2013 07:37:00 +0000

Thus far in Credit Advocates' series we have reviewed some of the rights that all tenants have in Massachusetts. However, what if the landlord does not comply after a health inspector visits? What if you have to handle an urgent situation on your own?

Options If Your Landlord Refuses to Make Repairs

Withhold Rent

One way to get a landlords attention and force him/her to fix uninhabitable conditions is to withhold some or all of the rent until the repairs are made. This is called "rent withholding."

Tenants have the right to withhold rent because landlords are obligated to provide safe and habitable housing under the warranty of habitability. If a landlord breaks this obligation, the tenant's obligation to pay the full rent is broken until repairs are made. The law does not state how much a tenant can withhold however be reasonable depending on the severity of the repair needed.

In the case of rent withholding, it is imperative to do this correctly. Additionally, if you have been living in a boarding house for less than three consecutive months, you do not have the right to withhold rent.

BEFORE WITHHOLDING SEE BELOW:

In order to be able to withhold rent, the tenant must be able to answer yes to ALL of these questions:

Do defective conditions exist in your apartment?
Do these conditions "endanger or materially impair" the health, safety, or well-being of anyone living in the home?
Does the landlord know about the defective conditions?
Were the conditions caused by someone or something other than yourself or someone under your control (such as a guest or a member of the rented space)?
Can your landlord make repairs without your having to permanently move out?

If a tenant can answer yes to all five questions, they can legally withhold their rent and the landlord cannot evict them. If a landlord tries to evict the tenant(s) and you have properly withheld rent (aka having all five conditions apple prior to withholding rent) the landlord may be violating other laws (evictions called Retaliatory Evictions).

Withholding Gives the Tenant the Power to Negotiate

Rent withholding is the most direct and most successful way to force a landlord to make repairs. It is especially effective in a building where tenants agree to join together and withhold rent (only with others who the five conditions above apply to also). Upon withholding rent, tenants are in a better position to negotiate with the landlord about what they want. Examples of issues that can be negotiated can include:

The date when the landlord will start and complete repairs
How much rent will be paid or withheld while repairs are completed
How much of the withheld rent will be returned (if any) once repairs are properly completed

Protect Oneself While Withholding Rent

The right to withhold rent does NOT mean tenants can live in their apartment rent free. Rent withholding is a tactic used to get a landlord to make repairs. Once these repairs are completed, tenants must resume paying rent.

The best way to protect oneself while withholding rent is to take the rent money and set it aside in a bank account separate from any other bank account that money is kept in (never keep a large amount of cash in an apartment). The law does not require a tenant's rent to be in a bank however there are several reasons why this is important.

In the case that a landlord tries to evict a rent withholding tenant (assuming all five points required to withhold rent are filled), the tenant can show a judge that they have/had the money to pay rent and they did not stop paying because of the inability to pay. Setting up a separate bank account strengthens a tenants case and allows for increased credibility in the eyes of a judge if the tenant takes the landlord to court or the landlord attempts to evict the tenant.

Additionally, if a judge orders the tenant to pay all or some of their rent, they are able to. If a judge orders the tenant to pay, and they don't, they can be evicted. It is highly unlikely that a judge finds conditions so terrible that 100% of the rent can be withheld.

Note: Legally, once the landlord makes the repairs, the withheld rent does not automatically need to be given to the landlord. A tenant may opt to keep some of all of the rent withheld because of the impact the conditions had on the use of the apartment. Only a judge can order a tenant to pay the money. If the landlord takes the tenant to court, the tenant needs to explain to the judge how these conditions affected everyone living in the rented space. Depending on the situation, the judge may decide you can keep part of all of the withheld rent.

Be Prepared For How a Landlord May React

While tenants in Massachusetts have the right to withhold rent, landlords may try to evict the tenants. The best way to protect oneself:

Document all the bad conditions
Meet the requirements for withholding rent
Deposit the rent in a separate bank account
Use the sample Rent Withholding Letter to notify the landlord about the bad conditions

A copy of a housing inspection report that accurately describes code violations is the best way to document violations of the state Sanitary Code. It's also proof the landlord knew about the conditions. Upon a landlord taking a tenant to court, if a judge finds that the tenant has followed all the legal requirements under rent withholding law, the tenant cannot be evicted.

Repair & Deduct

Under certain conditions, tenants in Massachusetts have the legal right to make repairs and deduct up to four months rent to pay for them. This is referred to as "repair and deduct." The advantage of choosing repair and deduct is that the repairs get done. The disadvantage (although some may see it as another advantage) is that the tenant takes responsibility to making sure the repairs are done well. Repair and Deduct Letter

When a Tenant Can Repair & Deduct

Alike withholding rent, all five of these requirements must be met in order for the tenant to repair & deduct:

Are there violations that "endanger or materially impair" the health, safety, or well-being of a tenant and has been certified by a housing inspector or that a court finds exist?
Have you ever given the landlord or her agent written notice of the violations?
Did the landlord fail to substantially complete repairs within 14 days after this notice, or within a shorter time if the housing inspector or court ordered this?
Were the conditions caused by someone or something other than yourself or someone under your control (such as a guest or member of the rented space)?
Have you given your landlord access to your home to make repairs?

What a Tenant Can Repair

Tenants are allowed by law to repair anything in their apartment or in the common areas of the building. If these are violations that affect several apartments or an entire building, a group of tenants can get together and have the repairs made. Be sure that everyone is in agreement, that the tenants have a certified Board of Health report documenting the problems, and that the landlord has been given written notice of the violations. Each and every tenant can deduct up to four months rent for their share of the total cost of repair.

How Much Can Be Deducted

In Massachusetts, a total of up to four months rent in any 12-month period can be deducted. These months cannot be stored up over years to then deduct more then four months rent in a single year. ALL BILLS AND RECEIPTS FOR MATERIALS AND LABOR MUST BE SAVED AS PROOF OF YOUR COSTS!!

If the Landlord Thinks Too Much Was Deducted

If the landlord feels the tenant has deducted too much for the repairs, he/she is allowed to go to court and try to get back some of this money. The law does NOT allow the landlord to evict a tenant if the court believes too much has been deducted. It is also illegal for landlords to raise the rent for repairs made legally under the repair & deduct statute (unless there is a court order permitting a rent increase yet this is very unlikely considering the lease that should have been signed will prohibit this).

Credit Advocates strives to get as much useful information out to the public as possible. Our next post will be on Subletting & its Legalities. However, if there is an unanswered question on Housing OR Credit Counseling email me at rsimon@creditadvocates.org and I will answer any & all questions here on the blog!

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

You Have Tenants Rights... Use Them! Part 2

noreply@blogger.com (Anonymous) — Tue, 17 Sep 2013 01:02:00 +0000

Tenant/Landlord disputes typically get resolved upon the assumption that the landlord is following all of the laws and regulations. This is not the case, especially regarding The State Sanitary Code and the Condition of an Apartment.

There are many sections & clauses to the Massachusetts State Sanitary Code and requirements of the Department of Public Health. These requirements exist to ensure safe & habitable living conditions for tenants. It is imperative to know your rights AND what to do if they are being trampled upon.

State Sanitary Code

In Massachusetts, the State Sanitary Code governs and defines what providing a habitable place, that is comfortable and clean enough for a person to live safely, entails.

If a landlord does not respond to a tenant's complaints about a sanitary code violation, the tenant may request that a code enforcement officer or the local board of health inspect the apartment (Note: In Boston, it is the Housing Inspection Department which enforces the code). An inspector can then come to the apartment, review the conditions, and order the landlord to fix the problem if deemed necessary. If the landlord still neglects to fix the problem, a tenant may move out, even if there is as lease or rental agreement in place. The tenant can move out because the lease was not held up on the landlords end - tenants sign a lease with the rightful assumption of a sanitary & habitable place to live. If this is proven untrue, the agreement is broken and a tenant can move out penalty free. A tenant may also be able to pay a lower rental rate for what the unit is actually worth.

If the apartment is (within reason) uninhabitable, a tenant is legally allowed to go to a motel/hotel until the problem is resolved and the landlord must reimburse the tenant for this. The tenant must make sure the landlord is fully aware of this and it is documented, otherwise the tenant will NOT be reimbursed. Additionally, this gives the landlord a push to fix the problem within the apartment.

Here are a few of the provisions outlines in the State Sanitary Code which protects the safety and well-being of tenants and the general public:

Water

You must be provided with enough water, with adequate water pressure, to meet your ordinary needs. Under certain limited circumstances, you can be charged for water costs if it is clearly noted in your written and signed rental agreement and there is a separate meter you have access to for your unit. The landlord must also provide the facilities to heat water at a temperature between 110-130 degrees Fahrenheit. Your written tenancy agreement or lease may require you to pay for and provide the fuel to heat the water.

Heat

The landlord must provide a heating system in good working order for every habitable room and every room containing a toilet, shower, or bathtub. The landlord must pay for the heat unless written otherwise in your lease. From September 16 to June 14, every room must be heated to at lease 68 degrees Fahrenheit between 7:00 AM and 11:00 PM, and at least 64 degrees Fahrenheit at all other hours. During the heating season, the maximum heat allowable in the apartment is 78 degrees Fahrenheit. The temperature should be able to be read.

The Department of Public Health defines a "habitable room" as: a room or enclosed floor space used or intended to be used for living, sleeping, cooking, or eating purposes excluding rooms containing toilets, bathtubs or showers and excluding laundries, pantries, foyers, closets, & storage spaces.

Natural Light and Electrical Outlets
There must be glass windows which admit light from the outdoors & which are equal in area or no less than 8% of the entire floor area of that room. Additionally, two separate wall-type outlets, or one outlet and one electric light fixture must be in each habitable room. The outlets should be placed in practical locations & be on different walls at least 10 ft apart.

Extermination of Insects, Rodents and Skunks
It is the landlord's responsibility to maintain a premise free of all rodents, skunks, cockroaches, and ALL insects in their units and building, and if needed, exterminate such animals.

An occupant should contact their landlord as soon as an infestation of any sort is suspected. Specifically regarding bed bugs - bed bug complaints can be directed to the Local Board of Health (LBOH), Health Department, or Inspectional Services Department (ISD) within the community. Minimum Standards of Fitness for Human Habitation requires the LBOH or ISD to inspect a unit within 24 hours. Landlords are required to inspect all units horizontally and vertically adjacent to an infested unit.It is important to create a paper trail and keep a log of everyone you have contacted, at which agency, and when you did so.

It is common for a landlord to attempt to hold tenants responsible for treatment/extermination costs. A landlord can even attempt to evict you for not paying these costs. However, this is NOT legal. It is the landlords responsibility to provide a habitable environment and to not adhere to this is a breach of the implied warranty of habitability. Additionally, a landlord cannot blame bed bugs or other infestations on the tenant (even if it is technically their fault the landlord is still responsible for extermination costs).

If the landlord does not immediately respond, the tenant is allowed to stay at a motel/hotel within reason and bill the landlord. It is imperative to know before you do this, you must inform the landlord of this and have it documented that there is an issue preventing you from having a habitable living environment.

Conditions Deemed to Endanger or Impair Health or Safety
The following conditions, when found to exist in residential premises, shall be deemed conditions which may endanger or impair the health, or safety & well-being of a person occupying the premises:

Failure to provide a supply of water sufficient in quantity, pressure and temperature, both hot & cold, to meet the ordinary needs of the occupant for a period of 24 hours or longer
Failure to provide heat as required or improper venting or use of a space heater or water heater
Shutoff and/or failure to restore electricity, gas or water
Failure to provide the electrical facilities and the lighting in common areas as required
Failure to provide a safe supply of water
Failure to provide a toilet & maintain a sewage disposal system
Failure to provide adequate exits and to ensure exits are not obstructed by any object such as garbage
Failure to comply with security requirements
Failure to comply with any provisions which may result in the accumulation of garbage, filth or other causes of illness and/or provide a food source for rodents, insects or other pests
The presence of lead-based paint
Roof, foundation, or other structural defects that may expose the occupant to fire, burns, shock, accident or other dangers or impairment to health or safety
Any defect in asbestos material used which may result in the release of asbestos dust or powder
Failure to provide a smoke detector or carbon monoxide detector alarm as required
Any of the following conditions which remain uncorrected for 5 days or more following the notice to the landlord:

Lack of a operable kitchen sink of sufficient size for washing dishes & utensils or lack of a. operable stove & oven
Failure to provide an operable sink & shower or bathtub
Any wiring defect which makes any system a hazard
Failure to maintain a safe handrail or protective railing for every stairway, porch, balcony, & roof
Failure to eliminate rodents, pests & any infestation

The full Department of Public Health, Minimum Standards of Fitness for Human Habitation (State Sanitary Code, Chapter II) can be viewed here.

Return to read about what justifies tenants paying less rent and local law on Rent Withholding, Repair-and-Deduct & Landlord Retaliation.

Credit Advocates is constantly looking to educate the public on all credit & housing counseling matters. For all questions answered you can email me at rsimon@creditadvocates.org.

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

You're Have Tenant's Rights... Use Them!

noreply@blogger.com (Anonymous) — Wed, 11 Sep 2013 15:15:00 +0000

Renters rights are not typically what students read about upon moving into their first (or even 5th) apartment. However, in order to protect yourself against neglectful landlords and hold your landlord accountable for what he/she is responsible for, you must know your rights.

As Credit Advocates expands to Massachusetts, it acknowledges the over 200,000 students studying in and around Boston. To the students of Massachusetts and all others who are renting their home, these are your Tenants Rights...

Finder's Fee
Only a licensed real estate broker or salesperson can charge you a fee for the purpose of finding an apartment. The amount due & the date must be disclosed to you prior to any transaction. There is no set fee - it's a contractual arrangement between the licensed broker or salesperson and you.

Pre-payments
Prior to moving in, the landlord can ONLY collect first & last months rent, one month's security deposit, and purchase & installation costs for a lock and key.

Before Agreeing to a Tenancy (aka Singing a Lease)

Do not put money down unless you are 100% you want the apartment - although you may be legally entitled to the return of your money up until the landlord formally accepts you as a tenant, this money may be difficult to recover
Calculate the anticipated costs of utilities
Know what is expected of you in terms of pre-payments or a finder's fee
Ensure the apartment is in acceptable conditions - put all agreements for repairs in writing
Talk with perspective neighbors & previous tenants about the reputation of the landlord and management company

Rental Agreements

According to state consumer protection regulations, a landlord must include the following in the written rental agreement:

Names, addresses, and telephone numbers of the owners and other people responsible for care, maintenance, and repairs on the property
Names, addresses, and telephone numbers of the person authorized to receive notices of violations of the law and to accept notice of a lawsuit on behalf of the owner (this is NOT YOU)
The amount of the security deposit and disclosure of the rights under the Security Deposit Law

If a landlord uses a lease that contains any provision that conflicts with the Security Deposit Law & attempts to enforce that provision or attempts to obtain from you or a perspective tenant a waiver of any provision of the Security Deposit Law, the landlord cannot keep your security deposit for any reason INCLUDING making deductions for damages.

The landlord also MUST give you an executed copy of the rental agreement within 30 days of your signing it. You and your landlord may agree verbally to terms however you must legally have this in writing

Security Deposits

Receipts

Upon receiving last month's rent and/or a security deposit, the landlord must give you a receipt for each pre-payment. If the landlord collects last month's rent, he/she must give you a statement indicating that you are entitled to interest on this rent & that you should provide a forwarding address at the termination of tenancy where interest can be sent.

Interest

The landlord must may interest on BOTH the security deposit and last month's rent. The payment of interest on the security deposit & last month's rent has been required by law since January 1, 1972 and April 1, 1984 respectively.

Security Deposit

You are entitled to either 5% interest or whatever lesser amount is received from the bank where the deposit has been held if you live in an apartment for a year or more. The law requires the landlord to hold a security deposit in a separate, interest-bearing account in a Massachusetts bank. The landlord must provide the tenant with the name and address of the bank holding the security deposit & the account number. Each year, the landlord must either pay the tenant the interest on the security deposit or let the tenant deduct that amount from a rent payment.

The landlord should give the tenant a "statement of condition" within 10 days of receipt of the security deposit - this describes the condition of the apartment and any damage that exists at that time.

The tenant then has 15 days to add to the "statement of condition" or make changes to it.

When the tenancy ends, the landlord must return the security deposit, plus interest, WITHIN 30 DAYS. However, the landlord can keep any unpaid rent & the amount needed to repair damage done to the apartment (beyond normal wear & tear).

If the landlord must keep all or a part of the security deposit for damages, then the landlord must give the tenant a written description of the damage and an estimate for the repair cost within 30 days from the time the tenant moves out.

Check back for more information about Last Month's Rent, State Sanitary Code & the Condition of an Apartment, transfers of landlords & other housing topics.

For all questions answered you can email rsimon@creditadvocates.org

rsimon@creditadvocates.org | creditadvocates.org

Protecting your rights begins by knowing your rights!

How are we Going to Pay for College?

noreply@blogger.com (Anonymous) — Fri, 23 Aug 2013 17:20:00 +0000

Higher education in America is no longer as simple as getting good grades, getting into a school fit for you, possibly taking advantage of a realistic sized loan or scholarship, graduating, and entering the workforce. Today in 2013, Millennials alike myself, a 4th year undergraduate student, have many more worries upon graduating than generations before us.

As I approach graduation time, I can only hope that I have a job to repay my student loans. However, hundreds of thousands of Millennials will try to shove our way onto the workforce escalator. Traditionally, as senior level executives stepped off of the escalator each year, room was cleared at the bottom of the escalator for recent graduates to take entry level jobs. Everybody who was already on the escalator, climbed up a few steps to take more senior level positions. Our workforce escalator worked this way for many past generations. Currently, my Millennial peers and I are in enormous trouble with our student loans because the escalator has come to a halt. Senior level executives are returning to work thus pushing everybody beneath them down the escalator. Additionally, the trend of people waiting longer to retire, leaves even more people on the escalator - people who would have traditionally stepped off the escalator long ago.

This unfortunately leaves me and thousands of my fellow Millennials dreary eyed and standing at the bottom of the escalator trying to use a microscope to find any space to get ourselves onto the escalator.

The combination of delayed entry into the workforce for recent graduates and the rapid increase of the cost of higher education should panic everybody. As a result of that, I will be introducing a new series on behalf of Credit Advocates, dedicated to steering prospective and current students and their concerned guardians in the right direction on the topic of Student Loans.

Get to Know Your Loans

Before you take any action to alleviate your debt burden, you need to know what type of loans you have. Different loans have different payment plans, so knowing what type of loan you have is imperative. Look up your loan on http://www.nslds.ed.gov/nslds_SA/ . If your loan is on that website, it is a federal loan and NSLDS will tell you which type. If it is not on the website, it is a private loan.

There are many less options for those with loans with private banks. Private lenders are not obligated to work with you to accommodate your financial situation. You should always try to contact your lender anyway. Everybodys situation varies greatly, however you should prioritize paying off private loans before federal ones - they typically carry a lower interest rate. You could even chose a payment plan for your federal loan which allows you to put more money toward your private loan and pay it off first and ASAP.

Budget, Budget, & Keep on Budget

Credit Advocates recommends everybody to live by a budget. Having a budget and sticking to it is imperative for those paying off a debt. You need to live the lifestyle you can afford NOT the lifestyle you can put on a credit card and pay for later. Living the lifestyle you can afford and paying off student loans consists of budgeting your money. Think about what you spend the most money on, your impulse purchases (and how to eliminate these), and what you can cut back on. Think about how you can spend less to put that money toward your student loan payments. The faster these loans are paid off, the less interest you will ultimately pay. Options range from turning down a few invitations for drinks to spending time outdoors for free or even moving in with family members to allow you to get your finances in order.

Living with your parents is never fun. But you know what is?
Sending in your last student loan payment... and having that extra money every month which you would have had to put toward a loan.

Another option for those who have weekday jobs is taking up a job on the weekends. This way you will be making money and won't be able to spend it on weekend outings!

CACC highly recommends everybody to fill out a budget, even if you don't have loans to pay off. Being able to visualize your budget and see where all of your money goes can be an eye opener for many.

Click here to go to CACC's site and do an online, interactive budget. Remember to be honest!! These numbers are meant for you to see where your money goes and help you budget.
Change Your Payment Plan

If you have federal loans, there are several payment options available for you. If you never spoke with your lender, you were automatically enrolled in the standard payment plan. This costs the least in interest, but has higher initial payments. And if you're like thousands of our fellow Millennials... that won't work for you. What you need to understand about payment plans, and repaying anything with interest, is the longer the payment plan is & the lower the monthly payment is, the longer you'll be paying back your loan and the more interest you will ultimately pay.

Lowering your monthly payment should not be an impulse decision. The longer your payment plan is, the more interest you will ultimately pay.

Click here to go to the Federal Student Aid website and view a chart of the different repayment plans for federal student loans.

If there are ever any questions about what was covered in each blog post, feel free to e-mail me at rsimon@creditadvocates.org and check out Credit Advocate's website at creditadvocates.org for an interactive budget worksheet & debt calculator.
Check back soon for more information on repaying your student loans!

Information is power so don't be left out of the loop!

email: rsimon@creditadvocates.org | website: creditadvocates.org

There's No Place Like Home - Part 4

noreply@blogger.com (Anonymous) — Thu, 15 Aug 2013 16:23:00 +0000

Credit Advocates is dedicated to educating tenants on their rights with a continuation to the series: There's No Place Like Home

Make sure any agreement you have with your landlord is in writing & complies with current laws

If your building is sold to another landlord, he/she may attempt to gain control of your apartment if the agreement you had with the previous landlord is unenforceable. At the most simple level, all agreements must be in writing in order for you to prove that agreement even exists.

Speak to other tenants

Multiple complaints from several tenants within the same building can not only strengthen a case, but you can save on attorney’s fees and make the landlord’s abuse clear to the court.

Act Quickly

Landlords know that tenants won’t fight hard to hold onto apartments if they’re in bad shape. That’s why it’s imperative to address bad conditions immediately and take aggressive action to protect your rights.

If you have a rent overcharge complaint, don’t go to Homes and Community Renewal

Things may be improving, but still if you claim an overcharge at the HCR, you won’t be able to challenge the rent amount in Court if your landlord sues you. For decades, the HCR has been the target of major lobbying efforts by landlords, and became the worst forum for tenants. If you've already made a complaint to the HCR, check with a Tenants’ attorney about withdrawing the complaint and bringing your case in Court, where there’s a possibility for a much better outcome.You cannot make the same complaint in both courts - always make it in Housing Court and NOT Homes & Community Renewal.

Don’t get blacklisted

If you are sued by a landlord, you can be blacklisted when you try to rent another apartment. Housing Court sells the names of all tenants who are involved in Landlord Tenant proceedings to background checking agencies. However, don't panic about getting blacklisted. Typically, unless you have committed a felony in your apartment, this will not happen to you.

Rent-Regulated Apartments

You and your landlord are at war. Your landlord has a large financial incentive to get you out of your apartment. If you vacate your apartment, your landlord will get a ~20% increase on a two-year lease for a new tenant. This means if you were lucky enough to secure a rent controlled apartment, you need to be vigilant about protecting your rights.

Avoid revealing too much to your landlord & neighbors

If your rent-stabilized or rent-controlled apartment is not your primary residence, you can lose your rights to rent-regulated status and your landlord can evict you. If you have other real estate interests such as rental property, a vacation or second home, don’t let your landlord know it.

If you’re a senior citizen or disabled, look into freezing your rent

Senior citizens and the disabled can freeze their rent if they’re below a certain income ceiling. Often times, the tenant continues to pay their rent at the time of freezing it, and the landlord is compensated for the difference by a tax abatement.

Visit this site to see how NYC seniors can freeze their rent and the requirements for doing so: http://www.mfy.org/wp-content/uploads/facts/HousingSCRIE(SeniorCitizens).pdf

If anybody has any eviction or general housing questions, feel free to e-mail me at rsimon@creditadvocates.org - all questions and answers will be posted here on the Credit Advocates blog!

And as always, protecting your rights begins by knowing your rights!

There's No Place Like Home - Part 3

noreply@blogger.com (Anonymous) — Mon, 12 Aug 2013 19:15:00 +0000

Credit Advocates is dedicated to educating tenants on their rights with a continuation to the series: There's No Place Like Home

If you’re locked out or find an eviction notice on your door, go to Housing court immediately

It’s important to act as soon as you know there’s a problem. If possible, the first thing to do is call a Tenants’ Attorney, but don’t delay going to court if you cannot reach one. However, if you aren't knowledgeable about your rights and court procedures, anything you do or say, may be used against you. Even if you received a Marshal’s Notice of Eviction, further action can be delayed until the Order to Show Cause is decided upon.

Don’t expect your landlord to be fair, reasonable, or just

Landlords are businessmen and their business is collecting your rent. Landlords tend to blame tenants rather than taking responsibility for the cost of repairs. This is why upon fighting a landlord, is it imperative to document everything. Your landlord may also be aware of an inhabitable situation in an apartment, yet refuse to adequately fix it as a way to get you to move out. Bedbugs are an example of this. Tenants with a Bedbug problem are able to obtain a Court Order forcing the landlord to clean the building and eliminate the infestation. Don’t hesitate to enforce your rights against a negligent landlord.

Keep a copy of your lease and related documents off premises, in a safe place you have access to any time

If you’re illegally evicted or lose access to your home, you must be able to bring your lease with you to court to secure your rights in court. You never want to be in a position where important papers are in your home, yet you are unable to get them because you are locked out. Keep a copy of your lease, last tax return or an official document with your current address (such as a utility bill) with a relative, friend, or attorney. This is a good idea even if you do not expect to have issues with your landlord. In instances of a flood, fire, burglary, or any unseen circumstances, it can be helpful to have these documents copied in a second, safe location.

Protecting your rights begins by knowing your rights - Don't forget to visit again for more tips in part 4

There's No Place Like Home - Part 2

noreply@blogger.com (Anonymous) — Mon, 12 Aug 2013 15:34:00 +0000

Credit Advocates is dedicated to educating tenants on their rights with a new addition to the series: There's No Place Like Home

If you’ve been illegally evicted, call the police

Examples of illegal eviction include but are not limited to:

Being locked out

Having the door removed

Anybody using or threatening to use violence

Discontinuation or threatening to discontinue essential services (ex/ electricity, running water, heat)

Removal of your property or appliances

There are many other methods of illegal eviction depending on your state.

Be sure to document all offenses and if possible & take pictures!

What to do if you are illegally evicted:

Call the police. Sometimes the police do not like to get involved and will claim it’s a civil matter. However, to trespass, to illegally evict you, and illegal eviction itself are all crimes – so it’s NOT just a civil matter.
If the officer refuses to help you, tell the officer, “The law says that under procedure 117-11 (this procedure refers to New York State specifically, however it is law in ALL states - the procedure name just varies), police are required to assist tenants in circumstances of illegal eviction, which is why I’m calling. I would like a police officer to come to my apartment and write up a report.”
If you do not get cooperation, ask for the name of the person you are speaking to and the sergeant or supervisor in charge at the 911 call center and speak with that person. If you still have difficulty, call your local precinct and repeat these steps. Write down the names and badge numbers of all police personnel you have contact with.

If the police come to your apartment or you have to go to the precinct, it’s tremendously important to get a police report documenting the incident. You want a written record of your illegal eviction, and any other relevant documents, which your attorney can show in court. Your landlord may even be arrested. If neighbors can back up your story, and the police can take statements from them, that can also help.

If you must call to restore the utilities, explain to them the situation of illegal eviction and explore your options. Keep a log of everything that happens, along with a list of names, and the date and time of each conversation. Winning against your landlord requires evidence to support your position.

Be sure to have a copy of your lease and your Driver’s License is up-to-date with the address of the apartment you were illegally evicted out of to prove you live there. Mail sent to you at your residence is also proof of residence.

In NYC, if you were illegally evicted and have no place to stay, call the Emergency Unit at 1-800-994-6494 for temporary shelter.

BE AWARE: If you were evicted with a legal court process and then try to break into your apartment, you become the criminal. Always remember, upon being illegally evicted, the first thing to do is contact the police.

A landlord may try to evict you for using your LEGAL right

A landlord may try to evict you if you have exercised a legal right (ex/ using the right to deduct from future rent the amount necessary to repair defects covered by the implied warranty of habitability – this amount cannot be more than one month’s rent) . A landlord may also raise the tenant’s rent or seek to punish the tenant for complaining or lawfully exercising a tenant right. In both cases, the landlord’s action is called retaliatory.

The law will assume the landlord has a retaliatory motive if the landlord seeks to evict you (or other retaliatory action) within six months of exercising any of these tenant rights:

Using the repair and deduct remedy - the right to deduct from future rent the amount necessary to repair defects covered by the implied warranty of habitability
Complaining about the condition of the rental unit to the landlord or a public agency after giving the landlord notice
Filing a lawsuit or beginning arbitration based on the condition of the rental unit
Causing an appropriate public agency to inspect the rental unit or to issue a citation to the landlord

Protecting your rights begins by knowing your rights - Stay tuned for part 3

There's No Place Like Home - Part 1

noreply@blogger.com (Anonymous) — Thu, 08 Aug 2013 20:17:00 +0000

Credit Advocates is dedicated to educating tenants on their rights with this new series: There's No Place Like Home

Each day, millions of people go to work with the ultimate goal of bringing home a paycheck. This paycheck is used to pay for food, utilities, clothing, education, and many other things. Yet, none of these expenses are more important and influential in a person’s life than a home.

The only way to truly protect yourself against cruel and greedy landlords is to know your rights. The Housing Court has always traditionally been in favor of landlords in many ways. During a time when the Housing Court cannot be depended upon to enforce tenant’s rights by manipulating rent regulation laws, rents are skyrocketing and fueling greedy landlords. Additionally, the practice of the courts reaching resolutions faster, as a result of flooded Housing Courts, often trounces tenants. Landlords have bottomless pockets and have deeply rooted political influence.

To protect your rights, you must know your rights. Most tenants don’t know their rights. Don’t be one of them. If you don’t know your rights, there is nothing to keep you from being taken advantage of. However, knowing your rights is NOT a substitute for hiring an experienced Tenants’ attorney to negotiate on your behalf.

Hire a Tenants’ attorney to represent you

If you want a fair trial, you need to hire a Tenants’ attorney. Most likely, your landlord will bring a well-seasoned, knowledgeable expert to defeat you. Landlord Tenant Law is very complex and it’s too easy to be pushed around Housing Court to be lost and without a lawyer. There are innumerable traps which can mislead you into giving up your rights.

Only hire a Tenants’ attorney for a Landlord Tenant case

Lawyers who do not typically practice Landlord Tenant law are not familiar with the intricacies of Landlord Tenant law. Don’t hire a criminal, divorce, or corporate lawyer to represent you in Housing Court – this can hurt you more than help you. Even attorneys who practice real estate law are often unfamiliar with the complexity and loopholes of Landlord Tenant law.

You can’t be convicted without a Court process

If a landlord tries to evict you without bringing you to court, it is called “self-help” – and it’s 100% illegal. A self-help eviction without going to court potentially makes your landlord liable to reimburse you for triple the amount of any costs you sustained. An example of self-help eviction is your landlord changing your locks. If over the next few days you stay in a hotel, must buy food, or use a phone as a result of being locked out, save all your receipts. At Housing Court, your attorney can argue that your landlord used self-help to evict you and show proof of expenses you incurred as a result.

If your landlord tells you to leave, don’t panic. Tell your landlord that only the Court can order you to leave. Only the City Marshall or Sheriff has the legal right to take possession of your apartment without your permission - and only with a court order. The City Marshall or Sheriff is required to give you written notice so you can go to court and get an “order to show cause” to stop the eviction.

Protecting your rights begins by knowing your rights - Check soon back for part 2

NY Times Article - The Long Shadow of Bad Credit in a Job Search

noreply@blogger.com (Steven Burman) — Mon, 05 Aug 2013 17:40:00 +0000

Back on my May 11, 2013 I was interviewed in a New York Times article entitled:

"The Long Shadow of Bad Credit in a Job Search"

I will post a follow up to this article on this blog, but thought I would post the article as many of my clients have had questions and request on this particular topic.

Consumer Credit Questions and Answers: Hurricane Sandy and Credit Cards Payments

noreply@blogger.com (caccnyc) — Fri, 16 Nov 2012 16:54:00 +0000

Consumer Credit Questions and Answers: Hurricane Sandy and Credit Cards Payments

Hurricane Sandy and Credit Cards Payments

noreply@blogger.com (caccnyc) — Fri, 16 Nov 2012 16:52:00 +0000

As everybody knows at this point, Hurricane Sandy caused an incredible amount of damage to the New York metro area. I have been asked by many of our clients what are the specific policies in regards to missed or late credit card payments. There are as many answers to this question as there are credit cards. Each credit card company has their own internal policy in regards to waiving fees and credit reporting. Although I have seen many creditors post that they have a willingness to cooperate with consumers, I have rarely seen specific policies posted on creditor websites. My suggestion for consumers would be to call your creditors directly and find out what the specific policy of the creditor is regarding the missed or late payment. It would be best to get a copy of the specific policy in writing, but realistically that may not be possible. Many of the creditor policies will be handled on an individual basis. For this reason, it is important for a consumer to make the phone calls to their specific creditors. It would be a mistake to assume that each creditor will waive fees and not report negative information to the credit bureaus. A phone call may be all that is necessary to let the creditor know the details of one's situation. On a positive note, there is a high degree of cooperation on the creditor's side to work with consumers. Remember the creditors will not automatically help a consumer without receiving some information from the consumer first. A small effort on the part of the consumer could be very beneficial in terms of avoiding additional fees and negative credit reporting issues.

Understanding Payday Loans

noreply@blogger.com (caccnyc) — Wed, 20 Oct 2010 19:27:00 +0000

If you look up “payday loans” on Google, the first few dozen hits are all websites offering online payday loans and cash advances. These companies advertise phrases like “instant lender decision” or “get your cash today!” They stress immediacy and convenience, but offer absolutely no information on what the structure of their loan is like, what interest is being applied to the loan or what the penalties are like for missing a payment.

The reason why the cost of this convenience is not advertised is because it is unbelievably high. Payday loans typically range from $100 to $1000 and cost from 380 – 790% APR (annual interest), depending on the length of the loan. The higher interest applies to the shortest-term loans. I think a lot of people wonder how companies can get away with such astronomical interest rates.

To answer this, you need to understand what a payday loans is. Essentially, it is a very short-term loan given to an individual to cover his or her expenses before the next paycheck. The amount of the loan plus interest is withdrawn from his/her checking account on a fixed date, when his/her next paycheck is posted. The individuals who are willing to accept such high rates are likely ones who do not have access to revolving credit and do not have available savings. When there is an urgent need for money and seemingly no accessible alternatives, people can feel pressured to accept what they can get. However, many consumers who find themselves in such a situation (where they do not have savings or revolving credit and are desperate for a loan) will not have the money to repay their loan by the agreed date. If this happens, additional financing fees are accrued. As a result, borrowers are forced to enter repeat borrowing cycles with the lender, which will lead to hundreds of dollars in additional debt accrued in a very short period of time. According to the Consumer Federation of America (CFA), consumers have an average of eight to thirteen loans per year at a single lender.

In the United States, the loan volume in the industry was estimated to be 30.3 billion in 2009, with $4.8 billion paid in loan fees. Of all loans, payday loans are by far the costliest, which is why it is very important to be aware of the alternatives available to you, even in a desperate situation:
• Work with your creditors to have more time for your payment, which will give you the time to apply for a personal loan at a bank
• Ask your employer about the possibility for an advance
• Obtain a line of credit from an FDIC approved lender
• Don’t be afraid to turn to friends and family

Understanding Secure Credit Cards

noreply@blogger.com (caccnyc) — Wed, 06 Oct 2010 15:50:00 +0000

Last week I was interviewed for a NY1 segment on secured credit cards, and I realized that a lot of people might not be aware of the conditions and responsibilities that come with opening a secured card, when they hear about it in the context of improving credit.
They are easy to qualify for, and they help establish a credit history that will ultimately help consumers get lower interest rates on their loans. What many people do not know is that they need to contact the issuer and request that their payment history is reported to the three major credit bureaus. Also, there are a lot of secured cards offered to consumers, and the competition among them should serve as a strong incentive to do your homework to find the best deal before signing an agreement.

Although secured cards work much like credit cards, you will be required to submit a substantial deposit, equal to 100-200% of your revolving credit line. It is usually $300-500, so initially the credit line on your card is very low. Depending on your agreement, your credit line might be extended either through additional deposits or because of good payment history. The agreement will also outline the fees and penalties you may be subject to, and it’s important to pay attention to these.

• Sign-up fee
• Monthly maintenance fee
• Annual membership fees range from $20-50
• Late payment fees
• Over limit fees
• Returned item charges
• High APRs, which vary from 10-20+%
• Charges on foreign purchases

Credit.com has a page on secured credit cards offered by major banks and can be a useful tool for comparing rates and fees: http://www.credit.com/products/credit_cards/secure.jsp
Generally, a priority in choosing a secured card should be a relatively low APR, in case you face unexpected hardship and cannot pay your balance off completely. I have seen many clients pay thousands of dollars in interest to credit card companies. Therefore, it might be worthwhile to pay an annual fee, but settle for a relatively low APR.

The biggest take-away here is that as a consumer, you have to be proactive about your personal finances. Be aware of the terms of your cards and always keep track of your expenses to build and maintain a good credit history, which will ultimately pay off when you apply for long-term car and home loans.

Consumer Credit Tips

noreply@blogger.com (caccnyc) — Tue, 09 Mar 2010 17:28:00 +0000

Whether you’re an established savvy Saver or still a work in progress, the benefits of good credit are far reaching and long lasting. Among other things, a solid credit profile and high credit score makes you less risky to lenders. Why it can even lower your interest rates on credit cards and home loans (and save you money). But how do you go about building good credit – and maintaining it for the rest of your life? It’s hard to believe, but there’s not all that much accurate, readily available information out there to help you figure it out. Luckily, there are just a few really important things you need to keep in mind to create, maintain and enjoy a solid credit profile.

In many ways, less is more. Having too much established credit can make you look too “leveraged” or overextended. It’s better to go for quality over quantity when building your credit profile. Establishing a credit card account with at least one major bank almost guarantees that your payment history will be reported to all 3 credit bureaus and establishes your credit “worthiness” to other creditors. When building credit, make sure to take these things into account: payment history, amounts owed, length of credit history, types of credit in use and newly established credit. All contribute to building a positive credit profile and credit FICO score.

Using credit responsibly. Assuming you’ve established a credit card account, it’s important that you manage that account responsibly. When making a purchase on a credit card, don’t just look at the minimum due each month. The truth is, a single purchase may take months, sometimes years, to repay. You don’t want to carry a balance each month, especially if you don’t have a great credit card rate in the first place.

Traps and pitfalls to avoid. One of the best ways to avoid credit card trouble is to be well informed and organized. Read through your monthly billing statements and review all the charges on your accounts. If you don’t understand the statement, call customer service and review the bill until it’s clear. And remember, the new CARD Act of 2009 means creditors will need to give you 45 days’ notice to raise interest rate changes on a card. This new disclosure will help prevent high interest charges on your account without your prior knowledge. You’ll have the right to “opt out” of a particular change and maintain the current rate. The tradeoff? You’ll need to close the account. Also, the new law means you’ll get lower rates reinstated after 6 consecutive months of timely payments.

Clearly, there’s a movement for increased consumer protection. And it starts by taking personal responsibility for your credit profile. If you haven’t started building one, get started. And take good care of it.

Debts to Pay Before Credit Cards

noreply@blogger.com (caccnyc) — Thu, 10 Dec 2009 17:29:00 +0000

In many of the previous articles I spoke on the many ways to remedy credit card debt effectively. It is also important to know what debts should take priority in terms of repayment prior to credit card repayment. Figuring out which debts to pay first can often be a very difficult question, as many creditors may be very proactive in collection procedures. A consumer might not receive as much attention with a late mortgage or car payment. Lets begin to take a look at the debts that need to be addressed prior to the credit card bills.

•Family Necessities – Food, essential medical expenses.

•Housing Related Bills – Mortgage payment, real estate taxes, insurance rent.

•Utilities – Con Ed, gas, oil, and electric bills.

•Car Payments – This is especially important if the car is the only method of getting to one’s place of employment. This would also include car insurance.

•Child Support – (if applicable) Non-payment can result in imprisonment.

•Income Tax Debt – Not paying could cause loss of refund or garnishment.

•Court Judgments – If a judgment has been ordered, it may be wise to make payment a priority, as the risk of seized property or wage garnishment could exist.

•Student Loans – Failure to pay could result in loss of tax refunds. I person may qualify for deferment or forbearance.

•Non-collateral loans – These accounts take on a lesser priority. Credit card debt, debt owed to professionals, open merchant accounts. Accounts still will go to collection agency for non-payment.

Secured debts should be first on the list to be paid. This is because the creditor can take the collateral used to satisfy the outstanding debt. (i.e. car, home.) Priority lists can be made for individual circumstances and situations. Obviously, every consumer's situation is unique but this information to be used as a general guideline to formulate the beginning of a debt repayment plan.

Understanding FICO Scores - New Credit

noreply@blogger.com (caccnyc) — Fri, 11 Sep 2009 18:55:00 +0000

Many aspects of a FICO score can be the balance of various pieces of consumer information. Opening a bunch of new accounts in a short period of time might put up a red flag to a creditor. How many new accounts you open in a given period of time is reviewed by the FICO scoring system. How long it has been since you opened a new account is also factored into the scoring model. Inquiries also impact the credit score. It is not a good idea to have too many third party inquiries generated on a credit report. It is a good idea to monitor your own credit reports. The inquiries generated by an individual do not adversely effect a credit score. However, inquiries generated by 3rd parties could lower a score, should those 3rd party inquiries become excessive.

Understanding FICO Scores - Types of Credit

noreply@blogger.com (caccnyc) — Wed, 09 Sep 2009 15:59:00 +0000

The FICO score is based on a mix of credit cards, retail accounts, installment loans, finance accounts, and mortgage loans. It is not necessary to have one of each account. It is also not a good idea to open accounts that you do not intend to use. The more you can diversify your accounts, the more helpful it will be to present a more balanced credit profile. The idea is to have a credit profile which is being used, but also has a healthy degree of diversification. Types of credit in use usually account for approximately 10% of the FICO score.

Understanding FICO Scores - Length of Credit History

noreply@blogger.com (caccnyc) — Wed, 02 Sep 2009 15:15:00 +0000

Approximately 15% of the FICO score is related to the overall length of time your accounts have been in use. In general, a longer credit history will increase your FICO score. It is still possible to have a decent FICO score without a long credit history if the rest of the credit report is in good standing. The calculation of the FICO score takes into account the age of your oldest account, newest account, and the average age of all your existing accounts. It is important to show some activity on your accounts as well.

Understanding FICO Scores - Amounts Owed

noreply@blogger.com (caccnyc) — Tue, 18 Aug 2009 17:11:00 +0000

Having credit card accounts and having balances on them does not necessarily make you a high-risk borrower. However, when a high percentage of available credit is used up the FICO score can be adversely effected. The general rule is to try to keep your balances under 30% of the total available limit of a credit card. For example, if one had a card with a 10K limit, a good idea would be keeping the balance under 3K. The amount owed on all accounts plays an important part in the scoring as well. Even when one pays their accounts off in full each month, the credit report usually reports the total balance shown on the last statement. The amount owed on all accounts and on different types of accounts is also a factor. Sometimes having a small balance on a card and managing it responsibly can have a stronger positive impact on a credit score then just closing out an account. If a large number of accounts are carrying balances, this could give the perception to a creditor that an individual is over-extended. Paying down mortgages and installment loans play a very important role in terms of credit scoring. The main idea here to understand is that having balances is not in itself a bad thing, but as one gets closer to the limit on the credit lines the scores tend to go down